The Digital Economy sector is expected to generate up to ₦18.3 billion by the year 2026, according to the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani. Speaking at a press conference on the National Digital Economy and e-Governance Bill in Abuja, the minister highlighted the sector’s significance to Nigeria’s economy, pointing out that it accounts for 13 to 18 percent of GDP. He claimed that the Bill, which would properly and completely maximize the sector’s potential, was long overdue. The industry contributed over 16.6 percent of the country’s Gross Domestic Product (GDP) in Q4 2023.
Nigeria has emerged as one of the top two African countries for capital foreign direct Investment in technology. The sector’s potential to create opportunities and boost Productivity across all industries makes it incredibly unique and exceptional. Moreover, the new Bill aims to facilitate the expansion and transformation of Nigeria’s economy by integrating the digital economy into every aspect of Nigerian life. The minister explained that it will establish the conditions essential to foster innovation, economic growth, and fair competitiveness within the country.
Revolutionizing Nigeria’s digital economy with a new bill.
Sen. Shuaib Salisu, the chairman of the Senate Committee on ICT and Cybersecurity, stated that the bill is an unprecedented effort at enacting a comprehensive Legislation to address internet usage. He stated that the bill is designed to create an atmosphere that would spur the growth of the sector, not impose taxes or fees. The bill, according to Hon. Stanley Olajide, Chairman of the House Committee on Digital and Information Communication Technology, is an important piece of legislation that can revolutionize the sector and set it up for sustainable growth.
According to Kashifu Inuwa, the director general of the National Information Technology Development Agency (NITDA), the bill is designed to act as an enabler to make sure that the objectives set forth for Nigeria, particularly under the current administration, can be accomplished. Inuwa stated that the goal is to improve the nation’s overall adoption of the digital economy, especially in the public and private sectors. The ecosystem’s potential must be realized as it grows in order to support economic goals, which are based on the country’s advantages in terms of capacity, population, and other accessible resources, he added.
ICT sector made up about 16.5 percent of Nigeria’s GDP in 2022.
Furthermore, Nigeria’s youthful, tech-savvy populace and rising internet penetration are fuelling the country’s fast-growing digital economy. The number of Nigerians who use mobile devices to access the internet has significantly increased, contributing to the country’s internet penetration. This increase has made it easier for digital banking, e-commerce, and online Education to expand. Over 140 million Nigerians are internet users, according to the Nigerian Communications Commission (NCC). The Nigerian government has launched a number of programmes to support the sector in recent years, including the National Digital Economy Policy and Strategy (NDEPS).
Financial transactions have changed as a result of the emergence of mobile payment platforms like Paga, Flutterwave, and OPay, particularly in remote regions. The digital economy generated about ₦5.49 billion in Revenue in 2019, while its contribution to the GDP increased to almost 15 percent in 2021. In 2022, the ICT sector made up about 16.5 percent of Nigeria’s GDP. The estimated value of revenue derived from the sector exceeded ₦10 billion, setting new records. By 2026, it is now anticipated that these revenues will amount to $18.30 billion. Also, the country’s internet penetration rate is expected to increase from 49.0 percent in 2021 to 59.9 percent in 2026.
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By 2050, Nigeria’s internet gross domestic product is projected to grow from its present level of 6 percent to $145 billion. Experts have applauded President Bola Ahmed Tinubu’s administration for its dedication to advancing ICT development and the digital economy for the common good of all Nigerians. Although the economy is currently thriving, obstacles including inadequate infrastructure, a lack of digital literacy, and undefined regulations still exist. In order to maximize the digital sector’s full potential and promote equitable growth, these issues must be resolved.